Bill Text: CA AB1156 | 2009-2010 | Regular Session | Introduced

NOTE: There are more recent revisions of this legislation. Read Latest Draft

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Bill Title: State and local surplus funds: investments.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2010-02-02 - From committee: Filed with the Chief Clerk pursuant to Joint Rule 56. [AB1156 Detail]

Download: California-2009-AB1156-Introduced.html

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BILL NUMBER: AB 1156	INTRODUCED
	BILL TEXT


INTRODUCED BY   Assembly Member Nava

                        FEBRUARY 27, 2009

   An act to add Section 16430.1 to the Government Code, relating to
state funds.


	LEGISLATIVE COUNSEL'S DIGEST


   AB 1156, as introduced, Nava. Surplus funds: investments.
   Existing law specifies the types of securities that are eligible
for the investment of surplus state funds.
   This bill would require that the first priority for the investment
of surplus moneys be given to time deposits in an eligible community
bank, as defined, to the maximum extent consistent with liquidity
requirements and prudent management of surplus moneys.
   Vote: majority. Appropriation: no. Fiscal committee: yes.
State-mandated local program: no.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:

  SECTION 1.  Section 16430.1 is added to the Government Code, to
read:
   16430.1.    (a) Notwithstanding Section 16430 or any other
provision of law, the first priority for the investment of surplus
moneys shall be, to the maximum extent consistent with liquidity
requirements and prudent management of surplus moneys, time deposits
in an eligible community bank, if the time deposits of surplus funds
and all other investments of surplus moneys made pursuant to this
section are in compliance with all other requirements established by
state law.
   (b) For purposes of this section "eligible community bank" means a
state or national bank located in this state that meets all of the
following requirements and conditions:
   (1) The bank is selected by the Treasurer for the safekeeping of
money belonging to or in the custody of the state.
   (2) The bank has received an overall rating of not less than
"satisfactory" in its most recent evaluation by the appropriate
federal financial supervisory agency of the bank's record of meeting
the credit needs of the state's communities, including low- and
moderate-income neighborhoods, pursuant to Section 2906 of Title 12
of the United States Code.
   (3) The bank is eligible to receive deposits only to the extent
that it complies with the requirements of Chapter 4 (commencing with
Section 16500).